Sprint's Profits Shrink In Second Quarter

Sprint Nextel reported profits of $19 million (1 cent per share) in the second quarter, down from $370 million (12 cents) in the same period in 2006.

"The yearly decline in earnings per share is due to a lower contribution from operations, start-up costs associated with the WiMAX initiative and increased net interest expense, partially offset by fewer common shares outstanding," following move to buy back $1.1 billion in stock during the quarter, the company said

On the bright side, the company said its wireless subscriber base grew by 400,000 or 5 percent to 54 million in the quarter, and revenues were up 2 percent for the period.